Job Training, Wage Growth, and Labor Turnover
Using explicit information on timing and duration of job training in panels of PSID men, I find negative effects of training on turnover and positive effects on wage growth in the firm and over longer periods (1968 to 1983). Wages of trainees grow 4-6% faster per year over periods of training compared to other workers or periods. Wage trajectories in the firm and across firms over longer periods are steeper for workers who engage in more training. These results are explainable by a positive correlation between general and firm-specific components of training. So is the apparent paradox that frequent movers' wages grow less in the long run than those of less frequent movers (stayers), despite wage gains in moving. Mobility wage gains are reduced by worker investment in training in the new firm. These mobility (search and matching) gains appear to contribute to job attachment in the presence of such investments.
|Date of creation:||Aug 1988|
|Publication status:||published as Studies in Human Capital, E. Elger Publishing (1993)|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Katharine G. Abraham & Henry S. Farber, 1986.
"Job Duration, Seniority, and Earnings,"
NBER Working Papers
1819, National Bureau of Economic Research, Inc.
- Jovanovic, Boyan, 1979.
"Job Matching and the Theory of Turnover,"
Journal of Political Economy,
University of Chicago Press, vol. 87(5), pages 972-990, October.
- Joseph G. Altonji & Robert A. Shakotko, 1985. "Do Wages Rise With Job Seniority?," NBER Working Papers 1616, National Bureau of Economic Research, Inc.
- Joanne Salop & Steven Salop, 1976. "Self-Selection and Turnover in the Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 90(4), pages 619-627.
- repec:pri:indrel:dsp0144558d29c is not listed on IDEAS
- Jacob Mincer & Boyan Jovanovic, 1981.
"Labor Mobility and Wages,"
in: Studies in Labor Markets, pages 21-64
National Bureau of Economic Research, Inc.
- Lazear, Edward P, 1981. "Agency, Earnings Profiles, Productivity, and Hours Restrictions," American Economic Review, American Economic Association, vol. 71(4), pages 606-620, September.
- Reuben Gronau, 1982.
"Sex-Related Wage Differentials and Women's Interrupted Labor Careers--The Chicken or the Egg,"
NBER Working Papers
1002, National Bureau of Economic Research, Inc.
- Gronau, Reuben, 1988. "Sex-Related Wage Differentials and Women's Interrupted Labor Careers--The Chicken or the Egg," Journal of Labor Economics, University of Chicago Press, vol. 6(3), pages 277-301, July.
- Stafford, Frank & Duncan, Greg J., 1979. "The Use of Time and Technology by Households in the United States," Working Paper Series 21, Research Institute of Industrial Economics.
- repec:fth:prinin:187 is not listed on IDEAS
- repec:pri:indrel:dsp01vt150j25d is not listed on IDEAS
- Jacob Mincer, 1986. "Wage Changes in Job Changes," NBER Working Papers 1907, National Bureau of Economic Research, Inc.
- Barron, John M & Black, Dan A & Loewenstein, Mark A, 1989. "Job Matching and On-the-Job Training," Journal of Labor Economics, University of Chicago Press, vol. 7(1), pages 1-19, January.
- Marshall, Robert C & Zarkin, Gary A, 1987. "The Effect of Job Tenure on Wage Offers," Journal of Labor Economics, University of Chicago Press, vol. 5(3), pages 301-324, July.
- Jovanovic, Boyan, 1979. "Firm-specific Capital and Turnover," Journal of Political Economy, University of Chicago Press, vol. 87(6), pages 1246-1260, December.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:2690. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.